Rising won-dollar rate recalls 1997 gold drive

As the won recently surged, more people are recalling the “gold collection campaign” from 30 years ago. In 1997, during the national crisis caused by the International Monetary Fund (IMF) foreign exchange crisis, citizens willingly turned in gold stored in their homes. The event has become an iconic moment in modern Korean history. At the time, 3.5 million people participated nationwide, contributing a total of 227 tons of gold, more than twice the current holdings of the Bank of Korea, which stand at 104 tons. The campaign was possible because of shared confidence that the nation could overcome the crisis and rebuild.

In the current high-exchange-rate situation, measures such as urging the sale of U.S. stocks have been proposed to manage dollar supply. In the past, collecting gold mattered because people had no money to repay dollar debts. Today, dollars are abundant for both individuals and companies, but they are tied up in overseas assets, creating a new type of scarcity in the foreign exchange market. As a result, the government is encouraging the National Pension Service and South Korean retail investors to repatriate funds, while urging export companies to convert their accumulated dollars.

As the won recently surged, memories of the “gold collection campaign” from 30 years ago have resurfaced. In 1997, during the national crisis triggered by the International Monetary Fund (IMF) foreign exchange crisis, citizens willingly turned in gold stored in their homes. The campaign has since become an iconic moment in modern Korean history. At the time, 3.5 million people participated nationwide, contributing a total of 227 tons of gold, more than twice the current holdings of the Bank of Korea, which stand at 104 tons. The effort succeeded because citizens shared confidence that the nation could overcome the crisis and rebuild.

In today’s high-exchange-rate environment, measures such as encouraging the sale of U.S. stocks have been proposed to manage dollar supply. In the past, collecting gold was essential because people lacked the funds to repay dollar debts. Now, both individuals and companies hold ample dollars, but much of it is tied up in overseas assets, creating a new kind of scarcity in the foreign exchange market. As a result, the government is urging the National Pension Service and South Korean retail investors to repatriate funds while encouraging export companies to convert their accumulated dollars.